Latin American Markets Caught in Global Slump For Equities; Miners Lead Slide As Gold Tumbles
Latin American markets are broadly lower - albeit paring some losses in late Thursday trade - following global equities in a steep sell-off after the U.S. Federal Reserve yesterday said it likely will begin tapering its bond-buying stimulus program later by the end of the year and China's cash crunch worsened.
Mining stocks are leading the slide after bullion prices fell to their lowest levels in nearly three years as the U.S. dollar rallied for a second day in a row.
Here's where the regional markets stood around 1pm EDT:
- Ibovespa was down 780.05. Now down 675.9 (-1.4%) to 47,217.
- IPC (Mexico City) was down 856.72. Now down 721.2 (-2%) to 38,323.7.
- Santiago Index IPSA down 81.79 (-2%) to 3,865.3.
- Merval Buenos Aires closed
IN ADR news, Empresas ICA SAB de CV ( ICA ) is down 2% to $6.46, earlier sliding to within 10 cents of its 52-week low of $6.05 after the Mexican construction company said it was sell its 18.7% stake in Red de Carreteras de Occidente SAB de CV, the concessionaire for approximately 760 kilometers of Mexican highways, to funds managed by Goldman Sachs ( GS ) for around $377.5 mln (Ps. 5,073 million). ICA will continue to operate the highways. The transaction completes an asset recycling process initiated in 2012.